Why would employer keep you around if takes all benefits away?

company reduced my hours and took my benefits away and still wants me to work for them WHY?

Maybe they think you would rather have less pay than no pay at all.

It could also have to do with their unemployment insurance. Possibly cutting you back doesn't count as a layoff which would increase their rates? That's just a guess.

It could also be that they can't really afford your position anymore, but they're trying to keep you on anyway. I would read this as a sign to look for something else.